Daily Market Analysis – 2/22/2016

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Very little in the way of economic announcements are coming out during the day today, so quite frankly it’s likely that the technical analysis will lead the way. We expect continuation of the moves from Friday, so having said that there are a few main themes that we are looking for.

1 – We believe that European indices will drop from here, as the situation in Europe continues to offer quite a bit of concern. Given enough time, we feel that the market will grind its way much lower. Stock markets are being shunned at this point in time, as traders are averse to any significant amount of risk.

2 – Energy markets continue to fall, and quite frankly we don’t see any hope of a serious recovery. We are put buyers when it comes to oil and natural gas, and believe that this will be the theme for at least the rest of the year if not longer. Today won’t be any different.

3 – Again, precious metals showed quite a bit of volatility during the day on Friday but quite frankly all you can do at this point in time is buy calls as precious metals are one of the few performing assets around the world right now. Anytime one of those markets fall, you have to be thinking “value” at that point in time and look to go long via calls as they have both most certainly broken out at this point in time. Ultimately, this is the beginning of a longer-term uptrend for both gold and silver from what we can see but you can anticipate quite a bit of bouncing around as the trend changes are never necessarily clean moves.